Monday, 7 December 2009

3. Principles of Trading Demand and Supply

These early articles may seem a little obvious and basic to some of you, but something I have noticed is that we often have trouble discussing a subject because we have all started from different points and most of us have gaps in our knowledge. Because of the way that learning resources are recorded and distributed, our journey is often a circular one. Here I am trying to keep things a little more linear.

In the article 'So you want to trade Support and Resistance?' I explained that demand and supply levels are likely trading points because of clusters of orders (or people willing to enter the market) causing an imbalance in demand and supply and rapid movement in price. So having altered our approach to thinking in terms of demand and supply, we need to put that in perspective in terms of order flow in the market. Genuine belief in the principle of demand and supply will be much more useful to you than belief in the more experienced traders who use this method!

There's no point me recording a video about this when Sam Seiden tells it like it is!

The next article will be Identifying Demand and Supply Levels.

No comments:

Post a Comment